BILL BLOW
Martin Lewis’ MSE issues warning to 800,000 households owed £141million over essential bill – are you due thousands?
Plus, we reveal other ways you might be owed money back
MARTIN Lewis' MoneySavingExpert has issued an urgent warning to 800,000 households due their share of a £141million fund.
The consumer website revealed hundreds of thousands have overpaid on their council tax and are owed money back.
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There are a number of reasons why you might have overpaid council tax, including if you've moved out of an area after paying for it in advance or had a retrospective discount applied.
MSE contacted 349 councils in England, Scotland and Wales asking how much they owed back in council tax refunds, with 331 replying.
In total, £141million was owed back to households, with London councils owing the most overall - £44,539,446.
The South East and North West of England were next, with households there owing £18,748,985 and £14,855,548 respectively.
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Of course, how much each household is owed back will vary depending on their personal circumstances.
But you could potentially be owed thousands of pounds back so it's worth checking if you think you've overpaid.
One Martin Lewis fan revealed that they got £4,000 back from a Council Tax bill after finding out they were eligible for a reduction.
How might you be overpaying on council tax?
There are a number of reasons why you might have overpaid council tax.
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You may have overpaid if you moved out of your area and paid your council tax in advance.
This is because council tax is charged annually, from April to April, but you often pay in 10 instalments instead of 12, for each month - from April to January.
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This means if you moved out of your home in mid-February, you would have overpaid by a month a half.
You may also have had a discount applied to your council tax bill retrospectively, say for example if you moved out and the person who took your place managed to lower their band.
You may also be owed money back if you forgot to cancel your council tax payment before moving out of your home.
This is because you have to contact your council to let them know you are moving home otherwise they will keep charging you.
How to claim back overpaid council tax
You've got two main options when it comes to claiming back any overpaid tax.
First, you should check on your council's website whether it has an online claims form.
This will usually be the quickest way to go about getting a refund, although you'll likely need your council tax reference number to hand. You can find this on a previous bill.
Failing that, you can call or email your council, but bear in mind the council may ask you to fill in a form anyway.
How else to save money on council tax
One way is by challenging your band, which anyone can do.
Properties across the UK are placed into bands A to H which informs how much you pay.
What council tax support is available?
THERE are several ways you can get discounts and reductions on your council tax bill.
In some cases, you can even get the bill completely wiped with a council tax reduction.
Factors such as your household income, whether you have children, and if you receive any benefits, will influence what you get.
To apply, visit https://www.gov.uk/apply-council-tax-reduction.
You'll need your National Insurance number, bank statements, a recent payslip or letter from the Jobcentre, and a passport or driving licence when filling out the details.
Below, we reveal all the ways you can get discounts or a reduction on your bill:
Single person discount
If you live on your own, you can get 25% off your council tax bill.
This also applies if there is one adult and one student living together in a property, or if there is one adult and one person classed as severely mentally impaired in the home.
If you live with someone who doesn't have to pay council tax, such as a carer or someone who is severely mentally impaired, you could get a larger reduction too, of up to 50%.
And, if you live in an all-student household, you could get a 100% discount.
Retirees
Pensioners may also find themselves eligible for a council tax reduction.
If you receive the Guarantee Credit element of Pension Credit, you could get a 100% discount.
If not, you could still get help if you have a low income and less than £16,000 in savings.
And a pensioner who lives alone will be entitled to a 25% discount too.
Low-income households
If you are on a low income or receiving benefits, you could be eligible for a reduction on your council tax.
Whether you are eligible will vary depending on where you live.
You could also get a deferral if you're struggling to pay your bill, or you can speak to your council about setting up a payment plan to manage the cost.
But one thing to remember is if you are struggling you should contact your council as early as you can.
But the bands were created based on home values in 1991, so you might find based on today's prices you should be in a band that pays less.
You can find what band you are in by checking with your local authority or on the postcode checker.
Use the council tax band checker tool to see which band properties along your street are in.
If they are in a lower band than you are, you could successfully make a challenge and get yours lowered.
You can challenge your band through the Valuation Office Agency (VOA) in England and Wales or the Scottish Assessors Association (SAA) in Scotland.
Gather together evidence showing you're paying more - this could be having addresses of similar properties to yours in a lower band, for example.
If the VOA agrees that your property is in the wrong band, it will contact you to let you know it will be changed.
But be warned, while you may be moved to a lower band, you could end up going up a band and paying more than before.
If you disagree with the VOA's ruling, you can appeal your case - but only if you've been told that you can when you get the decision.
You must appeal within three months of your decision - to do this, get in touch with the Valuation Tribunal Service.
If the Valuation Tribunal agrees with you, it will get the VOA to change your band - and your bill will change.
You might also be owed a council tax discount depending on your circumstances.
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For example, single people can get a 25% reduction, while retirees and low-income households can also get money off.
In some cases, you might be able to get your council tax wiped completely, which could save you hundreds, or even thousands of pounds.
Do you have a money problem that needs sorting? Get in touch by emailing money@the-sun.co.uk.
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